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American Focus > Blog > Economy > My Weekly Reading for January 19, 2025
Economy

My Weekly Reading for January 19, 2025

Last updated: January 19, 2025 4:50 pm
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My Weekly Reading for January 19, 2025
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The United States is currently facing a housing affordability crisis, with new data from Realtor.com shedding light on a significant contributing factor: the presence of millions of empty bedrooms in American homes. Census data shows that there are 31.8 million excess bedrooms in American homes today, compared to just 4 million in 1970. The increase in empty bedrooms can be attributed, in part, to overregulation, particularly in zoning and local occupancy laws.

Research conducted by the American Enterprise Institute reveals that in 23 out of the 30 largest U.S. cities, there are laws in place that restrict the number of unrelated occupants in a household. These laws define a “family” as a group of individuals who are related by blood, marriage, or adoption. For example, in St. Louis, no more than three unrelated persons are allowed to live together, while in Sugar Land, Texas, the limit is four. Private homeowner associations may have even stricter regulations, such as the Chase Oaks Homeowners Association in Plano, Texas, where a household can consist of no more than two unrelated individuals.

In another article by Johan Norberg, the potential consequences of escalating trade tensions between the U.S. and China are discussed. With the appointment of national security hawks and economic nationalists to key positions in the Trump administration, there is a growing concern about a possible decoupling of the American and Chinese economies. This could lead to harsh technology restrictions and trade policies that may have detrimental effects on both countries.

Trump’s proposed tariffs on Chinese imports could result in higher consumer prices, which would impact low-income consumers the most. While there may be a perception that only Beijing benefits from U.S.-China trade, research shows that an increase in imports from China actually led to a decline in U.S. consumer prices, saving the average American household approximately $1,500 per year.

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In a separate article by Jack Nicastro, the devastating wildfires in Greater Los Angeles are discussed, with at least 25 lives lost and over 12,000 structures destroyed. To aid in the rebuilding process, California Governor Gavin Newsom waived certain environmental regulations and implemented anti-price gouging laws. While suspending regulations can expedite the construction of new housing, price controls on essential goods and services could lead to shortages and hinder the recovery efforts.

Overall, the articles highlight the importance of balanced policies that promote economic growth while addressing housing affordability and trade relations. It is essential for policymakers to carefully consider the implications of their decisions on both the economy and the well-being of the American people.

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